Sinopec acquires Geneva-based Addax Petroleum Corp

21-Aug-09

China Petrochemical Corporation (Sinopec Group) has acquired Geneva-based Addax Petroleum Corp through its wholly-owned Sinopec International Petroleum Exploration and Production Corporation (SIPC). Per share bid price by SIPC's is C$52.8 (US$46), totaling to over C$8.32 bln (US$7.56 bln), the largest by cost overseas takeover transaction yet made by a Chinese oil company. With its oil and gas assets concentrating in Nigeria, Gabon and Iraq, Addax has 25 oil and gas blocks. Its remaining recoverable proved and probable reserves are 537 million barrels and the average crude oil output is 143,000 barrels per day. The annual oil output is expected to be increased from 7 million tons to 10 million tons. After acquisition of all the common shares of Addax, Sinopec will also take over all convertible bonds and equity options held by Addax, after which Addax will become a wholly-owned subsidiary of Sinopec, said an inner person with Sinopec Group. Sinopec plans to maintain the corporate management and all employees of Addax, and only send a few managers and technicians from Sinopec. The acquisition of Addax, whose oil and gas reserves are similar to a middle-sized oil field in China, will accelerate Sinopec's international growth strategy and optimize its offshore oil and gas asset portfolio.